Leading buyers urge designers to be export ready
New generation designers are risking long-term export opportunities by neglecting strict international trade requirements, a leading consultant has warned.
Industry international business development consultant Caroline McIntosh said designers looking to build on exposure at Rosemount Australian Fashion Week (April 28 - May 2) needed to ensure they properly researched relevant TCF markets.
The warning comes as the strong dollar forces key international buyers to review their portfolio of Australian brands. Indonesian buyer Susan Whyte, who operates Funky Princess boutique in Jakarta, said one factor weighing in on her spring/summer 2008 purchasing was choosing designers who were export ready. This meant goods arrived on time, had correct documentation and were packaged efficiently to avoid excessive freight costs, she said.
"I've dealt with the wholesale market for ten years and I find it hard to deal with new designers who don't understand the local market. Companies don't realise that export customers are probably consolidating all their buying so if one company is late with production, you are paying excess storage goods at cargo."
Whyte said many young designers didn't understand expenses associated with freighting, with one Australian company sending "five dresses in the largest box you've ever seen".
"In other words, I pay for a large box that's empty," she said. "My order was ten pieces and they sent five pieces in one shipment and five in another. Indonesia requires prepayment for all deliveries leaving Australian manufacturers so this makes it especially hard on cash flow - I have to prepay entire summer orders, freight charges, duties and other expenses."
American Rag Cie, a leading Los Angeles streetwear retailer which sources 40 per cent of its stock from the Australian market, has reported issues with designers holding seasonal stock for international buyers. Buyer Ruthie Miller said emerging local brands needed to "buy in" to the fact American Rag Cie operated on a different hemisphere.
"I understand they're designers and they need to sell and they need to be profitable but one of my biggest disappointments is not receiving stock I've ordered," she said. "Say there's a dress I've been looking forward to stocking and it's sold out all over Australia - I won't receive it because it's in shops and everyone wants to buy it."
McIntosh said it was essential Australian designers understood these concerns to ensure profitability in exporting.
"A common mistake they make is not understanding the international buyers requirements and expectations," she said. "Research the markets, the buyers, the export documentation requirements, freight, import duties and any quotas. The key to success is to ask as many questions as possible."
By Assia Benmedjdoub